Explain how economists use random experiments
What will be an ideal response?
These are sometimes referred to as randomized experiments. They are outcomes of specific interventions are determined by using the intervention in a randomly selected subset of a sample and then comparing outcomes from the exposed and control group.
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Suppose an individual experiences a permanent increase in income. As a result of this increased income, further assume that the individual eats dinner at restaurants more frequently each month
This information suggests that dinners at restaurants for this individual are A) an inferior good. B) a substitute good. C) a normal good. D) both complimentary and inferior.
If the marginal propensity to consume is 2/3 and autonomous consumption spending increases by $3 trillion, what is the change in GDP?
a. $3 trillion b. $1 trillion c. -$3 trillion d. $9 trillion e. -$9 trillion